In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company’s productivity: 20x1 20x2 Number of units produced 540,000 450,000 Labor hours used 108,000 75,000 Materials used (lbs.) 2,160,000 1,500,000 Required: 1. Calculate the productivity profile for 20x1. If required, round your answers to two decimal places. Partial Operational Productivity Ratios 20x1 Profile Labor productivity ratio fill in the blank 1 Material productivity ratio fill in the blank 2 2. Calculate the productivity profile for 20x2. If required, round your answers to two decimal places. Partial Operational Productivity Ratios 20x2 Profile Labor productivity ratio fill in the blank 3 Material productivity ratio fill in the blank 4 3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate? If required, round your answers to two decimal places. Partial Operational Productivity Ratios 20x1 Profile 20x2 Profile Labor productivity ratio fill in the blank 5 fill in the blank 6 Material productivity ratio fill in the blank 7 fill in the blank 8
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company’s productivity:
| 20x1 | 20x2 | |
| Number of units produced | 540,000 | 450,000 |
| Labor hours used | 108,000 | 75,000 |
| Materials used (lbs.) | 2,160,000 | 1,500,000 |
Required:
1. Calculate the productivity profile for 20x1. If required, round your answers to two decimal places.
| Partial Operational Productivity Ratios | 20x1 Profile |
| Labor productivity ratio | fill in the blank 1 |
| Material productivity ratio | fill in the blank 2 |
2. Calculate the productivity profile for 20x2. If required, round your answers to two decimal places.
| Partial Operational Productivity Ratios | 20x2 Profile |
| Labor productivity ratio | fill in the blank 3 |
| Material productivity ratio | fill in the blank 4 |
3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate? If required, round your answers to two decimal places.
| Partial Operational Productivity Ratios | 20x1 Profile | 20x2 Profile |
| Labor productivity ratio | fill in the blank 5 | fill in the blank 6 |
| Material productivity ratio | fill in the blank 7 | fill in the blank 8 |
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